Perspective on 2 AE Offers

First, need to express my love for the War Room community, its sense of belonging, and everything you all have taught me.

 

Since I value WR's input given the broad experiences and perspectives, I'm seeking insight choosing between 2 AE offers.  In other words, is there anything else to consider or other perspectives to apply for this decision?

 

Both are SaaS AE positions that operate within the same industry (and same industry as my background), however they are very different firms/roles. 

 

Both have base salaries in the mid $100Ks. Both OTEs are double the base salary.  I had a few other offers that I cut out of the equation, narrowing it down to these two, which I am having a difficult decision with.

 

Option 1:

  • Higher Base salary - 25% greater than Option 2 // 6 Less Vacation days than Option 2.
  • They claim: 70% of reps in this vertical are at or over quota. Team is currently 120% to quota. Top 50% of reps earn $400K+. 
  • Cut throat in the sense that they "trim the fat" of underperforming reps after 1-1.5 years of underperformance.
  • Blue Chip public firm. Got to the size they are today through a ton of M&A.
  • I would be selling a portfolio of solutions into a specific client type.  There are 10 individual solutions in the suite that serve various functions at the customer, so good cross-sell oppies.
  • Hybrid role: covering existing accounts + new logos. There's a chance they change that deployment model in the future by segmenting new logo reps from existing account reps.
  • Premium provider with strong brand recognition yet ample competition.
  • Anticipate this being significantly more difficult to ramp up in terms of knowledge on the client industry and solutions.

 

Option 2:

  • Lower Base. Sign-on bonus that brings it more in line with the other offer, at least for year one. Unwilling to negotiate base salary any higher because I would "be the highest paid AE on this team."
  • 6 more vacation days than Option 1.
  • No accelerators in the comp plan.  Pays the same rate at over 100% of target as it does at the first $1 in sales.
  • Series B company. ~200 employees. European company that's ramping up US business.  Well funded and healthy customer base for its age.
  • Slightly riskier in terms of company age. They've only been in the US for 1.5 years, so not much history to evaluate in terms of rep performance, targets, and tenure. However sales leadership comes from long tenures at blue chip firms.
  • I am more interested and excited about this company, primarily because the product is novel, resonates with me, and has more of a tech startup vibe.
  • It's one product with 3 primary applications/use cases across client types.
  • Generalist role that sells into various client types.  New logos only.

 

What do I value?

  1. Money. Obviously. At a certain point though, I'm comfortable, and everything extra is a bonus. That's around $200K for me. I live in HCOL but can afford my lifestyle essentials on these base salaries alone. I'm striving to retire early and reach financial freedom, however that doesn't mean I sacrifice all of my earnings for those goals, as I absolutely spend on activities and travel that I value today which brings me to…
  2. Vacation. This is a huge motivator for me to sell. I 1000% believe in a healthy amount of time off, and I use it all. The 6 days vacation difference walks the border of needing to be calculated with taking vacation versus having a nice buffer to not feel constrained when I want to take a spontaneous long weekend.
  3. Engagement with my work. I need to be somewhat interested in what I am selling, the company, and the client industry. That's part of the reason why I am looking for a new opportunity. 

 

For background, today I'm at a F500 public company where I have been for 5+ years.

Also in consideration is preparing two steps ahead for a worse-case scenario: if my next role doesn't work out as imagined, which experience will make me more marketable should I want to hunt for a new job again?


Thank you in advance for any input and guidance.

☁️ Software Tech
🤝 Interviewing/Offer
🎯 Career Development
6
SaaSData
Catalyst
8
VP of SaaS & Unit Economics 🏴‍☠️
ALWAYS Take the one you can destroy the comp plan and does not have controls in place.

Most likely in this one, I cringe but it's probably the 2nd one.

Stop valuing vacation so much in Sales.  You'll never get it.  Just take it when you become the top rep.  Don't ask about it anymore or talk about it.

You command it when you are good.

Engagement makes sense, but don't get crazy.

I hardly EVER say go with the lower base... in fact this might be the only time.

But... here... go with the lower base.

The Series B looks a little bit more like you can break and snap the comp plan up.

The vacation thing is a little weird though.  A totally annoying thing to hear when you are interviewing a rep and they talk about vacation.

Notice I didn't say don't take vacation.  I said take vacation, but don't tell me you are going to do it.

I'm not sure how I could handle a rep who is asking about this as a manager.  I'd like lie to you and have HR call you back.

This 10 product solution hybrid thing sounds completely weird and I would probably avoid that at a blue chip firm.  It doesn't sound like you can shatter the comp plan which is what you want to do.

I also liked the veterans at the Series B.  Those guys usually come around when they know there is a good W2 on the agenda.

The Series B will be way more desperate and who cares if they go under.  Stop worrying about your company going under.  It's really not that big of a deal.

You almost don't want your company to survive from a Sales Perspective (for the most part/halfway kidding).

Sweep the leg.  Break the comp plan.

-SaaSData 
lmk if i can help 
l
burytherail
Opinionated
1
New Logo AE
Thanks, now I understand it better. This is all great perspective.
SaaSData
Catalyst
0
VP of SaaS & Unit Economics 🏴‍☠️
good luck.

look for big incentives in funding round + 12-16 months.

look for smaller incentives in funding round + 1 month.

one big tell is if they have a new logo bonus.

from a financial / saas accounting perspective a new logo bonus is the worst idea in the world.

yet, so many companies do it, it's a complete tip off that someone can't use a calculator or they're desperate.

lean into the new logo bonus and sell your soul to get into accelerator with it.

-SaaSData
lmk if i can help

Text me at (908) 676-SaaS
SaaSData
Catalyst
0
VP of SaaS & Unit Economics 🏴‍☠️
It does suck
Dday
Opinionated
1
Account Executive
Don't talk about taking vacation... Bloody hell, the working culture sounds wild in America.
burytherail
Opinionated
0
New Logo AE
Thank you for the thoughtful and straight response.  You provided a few viewpoints that I did not initially consider.

To clarify, when you say "doesn't have controls in place," what are you referring to?  

I initially perceived Option 1 as encouraging more destroying of the comp plan because it does have accelerators above 100% of quota and the team has a demonstrated history of reps achieving big money.  Both options are uncapped comp.   However, you've made me think that I'm probably not seeing something that you are seeing, which is good and the essence of this post.
SaaSData
Catalyst
2
VP of SaaS & Unit Economics 🏴‍☠️
Something seems very weird about that 10 hybrid solution move.

Public Companies have a ton of controls in place and make it hard to break the comp plan.  What I mean by break it is usually have a $1m W2 year.

This is about $3.75m-4.0 in new ARR.  It's the best thing you can do in SaaS Sales.

I don't like how the Public Companies divide up territories.  They often will limit your comp by just having so many finance controls in place.

More people around to watch shit.

Series B everyone is on fire, and if they need the deals bad enough they will pay for years 2-3.

If you think it's more on the Accelerators, this could be a big deal.  But in my experience a Series B company has no controls in place and you can shatter a comp plan and go deep into accelerators vs a place that has a public control on it.

BigCo with a Hybrid role is a tough role to invision you smashing the comp plan and making the 3-4x.

Everything is sort of, uncapped... that's not what I was referring to but I see how I could be confusing there.

A Series B company has a real tough time getting to the next funding round.  That's where you come in, they will over pay for those deals at that point.  Plus, if you go to a less established company and smash it, it will help you get into a leadership role faster.  If that's your goal.

I also might have to back out of this one.  It sounds like you have more info that I don't have.  I just liked the agility of the Series B that you mentioned and that Hybrid Overlay 10 Solution thing sounds really hard to break through.

good luck or text me.

-SaaSData
lmk if i can help
CuriousFox
WR Officer
5
🦊
A few tiny red flags. Option A has 10 solutions which can get convoluted. Also the trim the fat comment made my hair stand up.

Go for the one you feel excited and passionate about.
jefe
Arsonist
2
🍁
Between this and the well-thought out essay(s)/analysis provided by @SaaSData, I'm inclined to agree. 
burytherail
Opinionated
1
New Logo AE
Thanks for the reply. Agree on how the solutions can become convoluted; that’s a similar experience to what I deal with today. The one upside of a breadth of offerings though, is the ability to up/cross-sell to existing accounts, so it’s more warm selling. These sorts of sales compose a huge chunk of that specific team’s sales.
dwightyouignorantsale
Politicker
2
Account Executive
It seems like you will have more growth opportunities with Option B. I’m not sure what the base difference is after the signing bonus, but if you aren’t one of those reps that hit quota and are kicked out within a year at Option A, you may come crawling back to Option B anyway. I have to say the lack of accelerators in Option B is a bit of a buzzkill, but use that to understand what you could make if you hit 70%, 100%, 125% of quota, etc. If you’re happy with those amounts, then go for the company that you’re more excited about.
burytherail
Opinionated
0
New Logo AE
Thank you! This is helpful
burytherail
Opinionated
0
New Logo AE
Forgot to add, if it makes any difference: Option 1 sells across client sizes including Enterprise and mid market. Option 2 is strictly commercial/mid market. Their enterprise team is separate.
Jewcan_Sam81
Politicker
0
Account Executive
This might just be me, but I never would take a job that doesn’t have accelerators on the comp plan, all the other stuff is cool I guess but that’s how you rake in the serious money
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